Commercial Crime Insurance

Cheque forgery: Employee forges a signature on cheque made out to himself or to someone else
Cheque tampering- alter the payee, amount or creates unauthorized cheque
Inventory theft- physical stealing or diverting of products
Theft of cash- stealing, skimming (not registering sale & pocketing of money)
Return fraud (collude with someone else to return goods fraudulently for refund)
Expense frauds- forging receipts, false reimbursement claims,, inflated expense claims, cos’ account for personal expenses,
Phantom vendor accounts
False customer accounts

Mostly in collusion with employees

Embezzlement (larceny)- by a person who control the funds
Accounts payable fraud- employee hiding fraudulent transaction among thousands of legitimate transactions ( cheque tampering, billing scheme, fraudulent expense reimbursements)
Fake supplier
Personal purchases
Account receivable frauds- lapping (recording on customer’s payment to another customer’s account), skimming (intercepting payments before they enter accounting system)

Fraud or dishonesty committed by any employee( alone or in collusion)
Fraudulent act committed by any other person
Broad definition of employee- part time, temporary, volunteer etc.
Care custody and control
Indemnification of reasonable fee, expenses incurred by insured in defense of any demand, claim, suit or legal proceeding

Employee theft coverage: loss of money, securities or other property by theft or forgery
Premises coverage: losses from destruction, disappearance or wrongful abstraction or computer theft of money or securities by TP
Transit coverage: losses sustained due to destruction, disappearance or abstraction of money or securities outside insured’s premises by TP, while being conveyed
Depository forgery coverage: cheques fraudulently drawn on insured’s account by TP
Computer fraud coverage: losses sustained due to computer fraud by TP expense incurred by Insured due to computer violation

War, civil war
Theft & fraud of insured’s partner
Cost of reproducing any information contained in lost or damaged records, accounts
Consequential loss, Loss of income
Fire
Loss of trade secrets
Credit risks
Major shareholder exclusion (owns or controls more than 5% of share capital)
Errors and omissions: loss arising from or related to Professional Services and Errors & Omission caused by employees

Employee: director while performing acts in scope of duties of an employee, part time or temporary employee, student or volunteer, trustee, solicitor retained by insured, persons provided by employment agency
Loss: direct financial loss from single act or series of related, continuous or repeated acts
Computer or funds transfer fraud: theft by manipulation of computer system by TP or fraudulent instructions to transfer funds from Insured’s account by TP
Counterfeiting: Insured is deceived by imitation of negotiable authentic documents
Forgery: hand written signing or endorsing the name of genuine person or copy of the said person’s signature by any other person without authority and intent to deceive
Fraudulent act: forgery, counterfeiting, fraudulent use of corporate credit/ debit cards, funds transfer fraud

Interest receivable or payable: Interest which would have been recoverable but for loss covered under policy or interest which becomes payable by Insured resulting directly from a
Criminal damage: in excess of any other insurance, excluding damage to money, securities, excluding fire howsoever caused
Violent and forcible theft of property by TP: in excess of any other insurance